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That doesn't make sense. If I have to pay each share 5$, and I have given out 500 shares, but when it's time to pay out dividends 700 shares show up to claim th
by thatguy0900 6y ago
That doesn't make sense. If I have to pay each share 5$, and I have given out 500 shares, but when it's time to pay out dividends 700 shares show up to claim them,then someone has to lose money right? Either I have to give 5$ to 200 shares that I never sold to people to begin with, or the 500 people who actually bought shares from me lose some of their portion to the extra 200. What am I missing if that's not the case? Surely that dividend money for those extra 200 shares has to come from somewhere?
- kgwgk 6y agoComes from the short-sellers. If I lend a share to you, you owe me a share and all the dividends that I would be receiving.
- thatguy0900 6y agoAlright, thank you. That makes sense.